How does decreased resedential value affect agreed loan?

happybroker

certainly makes sense but I would be concerned about where the extra £3154 came from.

Your mortgage balance seems to have gone up over the 2 years from £91250 to £94404. Allowing for an arrangement fee when you first got the Natwest loan, interest up to the day it was paid off in the month you pad them off and a fee for the lender to do the paperwork etc it still sounds a lot.

Are you sure you didn't get stung for an early repayment charge? If I were you I would raise this as a concern with your mortgage adviser and ask Natwest for a copy of the "redemption statement" that was sent out when you paid them off.

carrspaints

Thanks for the reply. Yes, there was a small early repayment charge, discharge fees, etc...I have checked the numbers and they are correct.

Thanks for your help in understanding this... very much appreciated.

dimbo61

Hi carrspaints
You have paid a mortgage for the last 2 years each and every month and
you now owe more than you did 2 years ago !
You have taken out another 2 year tracker variable rate deal with C&G YES !
Will you owe even more at the end of another 2 years.
You started out with a 25 year mortgage so why do you keep taking 2 year deals ? think long term and next time get a 5/10 year deal so you can start
to pay off some of that mortgage and build up more equity in your home.
Overpay if allowed ( check the terms and conditions of your mortgage )
and start to clear that debt GOOD LUCK

carrspaints

Hi, when I 1st took out a mortgage on this house (10 years ago), it was over a period of 25 years. I bought the house with my ex-wife for 75k. 3 years ago, we divorced and I bought her out. (The house was then valued at 175k, so she ended up with half that).

I then took out a new mortgage, but over a 15 year period. When that mortgage with NW expired in March, I took out a mortgage with C&G over an 11 year period. So I am working to pay off this tent quickly. The reason that I owed more to NW was because I took out a 10k loan (remortgage) to fit a conservatory...that hadn't been paid off fully at the completion of the NW mortgage arrangement and there were some small early repayment charges as well. So the redemption statement I received from NW is correct.

I was just struggling to understand the property value versus the loan amount. I think this confusion came in with the money I paid my wife...i.e., I ended up paying her more than the hosue was originally worth, then had to take a mortgage out for the value of the property at the time. It kinda confused me....initial loans are based on the actual valuation of the property less whatever downpayment is made..

dimbo61

been there done that !
got the t-shirt after she cut holes in it !
Good luck on becoming mortgage free